I recently added belt scaling as an option in my mod "More Quality Scaling" (https://mods.factorio.com/mod/more-quality-scaling).
It seem like you are replacing the belt items inside the player inventory, and are using an area tool to upgrade placed entities. My approach is to make no changes to items, and replace the entities when they are built.
My method works well for ghost building/blueprinting, but currently has issues with drag-building belts from the inventory and placing down underground belts from the item (instead of q-selecting the "qualitized" entity), while your method seems much more straightforward for early game building, but less convenient for late game blueprinting (and less "elegant" due to the necessity for shortcuts).
Perhaps we should a) document the differences between our mods, and b) implement some sort of compatibility - using the same entities (preferably mine, since I already add "placeable_by" properties, and optionally make quality undergrounds longer) would probably already result in pretty good overall compatibility - physical characters could work with your placement items, while remote players or blueprints could use my replace-on-build/placeable_by system...